The Andhra Pradesh State Investment Promotion Board (SIPB) has approved Google’s landmark hyperscale data center project in Visakhapatnam, representing an investment of nearly USD $10 billion. This initiative is one of the largest foreign direct investment (FDI) commitments in India’s digital infrastructure sector and is set to transform Andhra Pradesh’s IT ecosystem.
Vizag Branded as “AI City”
Chaired by Chief Minister N Chandrababu Naidu, the SIPB recognized the project as a gamechanger and endorsed plans to position Visakhapatnam as “AI City Vizag.” This strategic branding aims to replicate the transformative impact of early anchor investments, establishing Vizag as a global hub for AI, cloud computing, and data analytics, aligned with Digital India, IndiaAI Mission, and Make in India initiatives.
Campus Details and Infrastructure
The data center will comprise three major campuses located in Adavivaram and Tarluvada (Visakhapatnam district) and Rambilli (Anakapalli district), all expected to be operational by July 2028. The development includes high-capacity submarine cable landing stations, metro fiber networks, and supporting telecommunications infrastructure to ensure seamless connectivity.
A senior official from Andhra Pradesh’s ITE&C Department said, “This investment underscores global confidence in Andhra Pradesh’s governance, policy stability, and execution capability. The State offers single-window clearances, reliable utilities, renewable energy integration, and world-class infrastructure to ensure long-term operational stability for hyperscale projects.”
Driving AI and Digital Transformation
Google’s data center is expected to accelerate the adoption of AI, cloud computing, IoT, 5G, and e-governance platforms. The project will also boost ancillary sectors including power, fiber optics, real estate, and telecommunications, while prompting upgrades in road, power, and fiber connectivity. It is projected to enhance State revenues through SGST, electricity duty, and property tax once the incentive phase concludes.
Aligned with Andhra Pradesh’s push for sustainable, renewable energy-driven data centers, the government plans to develop a dedicated Emerging Technologies Cluster around Google’s facility, attracting AI and cloud enterprises and fast-tracking Vizag’s emergence as India’s AI Capital. Chief Minister Chandrababu Naidu stated, “The Google Data Center in Vizag will anchor our journey towards becoming the AI capital of India and a global hub for digital innovation. This is more than an investment—it’s a vision coming to life.”
Economic Impact and Job Creation
Independent assessments by Access Partnership (2025) and Google’s economic modeling estimate that the project will contribute an average of Rs 10,518 crore annually to Andhra Pradesh’s Gross State Domestic Product (GSDP) during the first five years (2028–2032). It is expected to support approximately 1,88,220 direct and indirect jobs each year across construction, data center operations, engineering, IT services, and supply chain functions.
Beyond direct operations, Google Cloud-enabled productivity gains are projected to contribute Rs 9,553 crore per year, totaling Rs 47,720 crore over five years through digital enablement across the wider economy. At the national level, similar digital infrastructure hubs could unlock up to USD $2.1 trillion in value addition and support 10 million jobs by 2047.
Visit Our News section and follow us on LinkedIn and Twitter
Read more full news: Here
